Samantha

Top 7 Business Credit Cards in Canada

September 18, 2019 By Samantha 9 Comments

Some of the best business credit cards in Canada are offered by financial institutions such as the Bank of Montreal, CIBC, TD Bank, and RBC. They feature cashback and rewards points, low annual fees, low purchase rates, insurance perks, and other beneficial features.

Rewards

CIBC Aerogold^® Visa for Business

CIBC Aerogold Visa for Business comes with travel benefits, extensive insurance coverage, and low interest rate. Customers are offered 35,000 bonus miles and 1.5 miles per $1 on purchases made at gas stations, travel agencies, car rental agencies, hotels, and airlines. All other purchases earn at 1 point per $1. Rewards points can be redeemed for merchandise, entertainment, car rentals, gift cards, and getaways. Rewards are offered across different categories such as sports and outdoor merchandise, home and garden, health and wellness, fashion and accessories, and activities and entertainment. The category of activities and entertainment includes SPA and gateways, attractions and parks, and events and dining. Examples of travel rewards are travel accessories, travel and cruise gift cards, and car rental certificates. Miles can also be used to pay expenses such as surcharges, fees, and taxes on airfare. CIBC Aerogold Visa also features extensive insurance coverage, including trip interruption and trip cancellation, common carrier accident, auto rental collision, and flight delay and baggage coverage. Mobile device and hotel burglary insurance are also available. Only customers with a minimum household income of $35,000 qualify.

Cash interest rate: 50 percent
Purchase interest rate: 12.99 percent
Annual fee: $180

TD Business Travel Visa Card

Toronto-Dominion offers a travel credit card with a selection of automotive, travel, and everyday benefits. Customers earn 3 points per dollar on business-related purchases, 6 points on booking travel through Expedia by phone, and 9 points on booking travel online. The card also comes with insurance perks such as lost and delayed luggage, common carrier travel accident, trip/flight delay, and travel medical insurance. Automotive benefits are also offered, including low base rates at Budget Rent a Car and Avis Rent A Car and auto rental collision/loss damage coverage.

Under the Visa SavingsEdge Program, customers qualify for generous discounts of up to 25 percent which apply to business-related purchases.

When applying, clients are asked to provide documents such as articles of incorporation, partnership agreement, or master business license, depending on the type of business (corporation, partnership, or sole proprietorship). Customers may also be asked to present their business financial statements and notice of assessment. They may apply by phone, at a local branch, and by booking an appointment.

Cash advance rate: 22.99 percent
Purchase rate: 19.99 percent
Annual fee: $149
Additional cards: $49
Minimum credit limit: $1,000

Cash Back

Scotia Momentum^® for Business VISA

Also a premium business card, Scotia Momentum for Business features up to 3 percent cashback on business expenses. Cash back is also offered on recurring payments such as gym memberships, insurance coverage, telecommunications, and subscriptions. Expenses that qualify for cash back include purchases made at office supply stores, restaurants, and gas stations. Supplementary cards also earn cash back. Business customers also benefit from insurance perks such as rental car collision and travel emergency medical insurance. The travel emergency medical insurance, for example, covers expenses such as surgeons’ and physicians’ fees, licensed ambulances, hospital stays, prescription drugs, medical supplies and services, and nursing care.

An added benefit is the fact that Scotiabank offers a low introductory rate of just 2.99 percent which is applicable to balance transfers made during the first six months. The credit limit is between $500 and $100,000. Visa SavingsEdge is also a useful feature available to qualifying businesses which allows them to get access to discounts and thus reduce costs. Customers are offered discounts on business purchases at participating merchants such as Blue Mountain, Sage 50, The UPS Store, Umbra, National Car Rental, and more. Discounts are offered on items in different categories, including entertainment and travel, telecommunications, and electronics, computer, and retail. Merchants offering discounts also operate in industries such as hotels, business software and publications, and business services and products. Discounts are in the range of 3 – 10 percent and up to 25 percent. To enroll in the program, cardholders are asked to fill in details such as postal code, business name, and industry (i.e. retail, real estate, manufacturing, transportation, construction, etc.).

Annual fee: $49
Supplementary cards: $29
Interest rate: 19.99 percent
Grace period: 25 days

No Annual Fee

BMO CashBack^® Business MasterCard^®

This is a good choice for customers looking for a no annual fee credit card, featuring a welcome bonus, money back, and optional employee cards. In addition to saving on annual fees, holders are offered 6 percent cash back on internet and phone bills, office supplies, and gas purchases during the first 4 months. Purchases made after the promotional period earn 1.5 percent cash back. Gas purchases at Shell locations earn at 1.75 points per dollar.

Additional benefits include extended warranty, automatic rebates at participating retailers, and pre-authorized payments. In addition to pre-authorized payments, bills can be paid at any BMO branch, online, by phone, and by mail. Customers are also offered emergency cash advances and replacement cards and assistance with stolen and lost cards.

Depending on the type of business, customers are asked to bring documents such as master business license, trade name registration, partnership agreement, and articles of association. Corporate customers must bring documents such as corporate profile report, articles of amalgamation, articles of amendment, and complete articles of incorporation. Business customers also provide details such as type of ownership, percentage ownership, nature of primary business, and occupation.

Cash advances: 22.99 percent
Purchase rate: 19.99 percent
Annual fee: $0

Protection and Insurance

RBC^® Avion^® Business for Visa

This card comes with an extensive insurance coverage, including extended warranty, liability waiver, rental car, and trip interruption and trip cancellation insurance. There are added incentives such as 20,000 welcome points, fuel discounts, and travel rewards, including tours, cruises, car rentals, hotels, and packaged holidays. Customers are free to choose from different rewards such as gift cards, merchandise, and Apple accessories and products. Every dollar spent on purchases earns 1 rewards point. Cardholders also earn triple rewards points on travel experiences offered by Carlson Wagonlit Travel and double rewards points on truck and car rentals by Thrifty. There are also financial rewards and the option to donate to a charity, pay with points, or convert points.

Cash advance rate: 22.99 percent
Purchase rate: 19.99 percent
Annual fee: $120
Additional cards: $50

American Express^® Business Gold Rewards Card

American Express also offers a rewards card that comes with a generous bonus of 25,000 points. Rewards points can be transferred to loyalty programs, used toward domestic or international airfare, or redeemed in the form of statement credit. Every dollar in travel purchases earns 2 points and so do purchases made at drugstores, grocery stores, and gas stations. Qualifying travel purchases include cruises, car rentals, hotel accommodation, and airfare. Every dollar in everyday purchases earns 1 point.

One of the main benefits for cardholders is the comprehensive insurance coverage. Customers are offered travel accident, baggage delay, flight delay, and hotel/motel burglary coverage. Car rental damage and theft, trip interruption, and stolen and lost baggage insurance are also available. Out of province/country emergency medical coverage is included as well.

This card also comes with a host of travel benefits, including complimentary room upgrades, vehicle upgrades, and hotel credit toward golf, spa, and dining.

Residents and citizens who have a Canadian credit file qualify provided that they are of the age of majority.

Annual fee: $250
Grace period: up to 31 days
Additional cards: $50

Low Interest Rate

CIBC bizline^® Visa Card for Small Business

This offer by CIBC is ideal for customers who wish to save on interest rates and still benefit from perks such as a high credit limit, additional cards, and insurance coverage. Holders are free to request up to 9 additional cards. The minimum annual income is $35,000. This credit card is also a good choice for business owners with revenues in the range of $35,000 – $5 million.

Cardholders are offered common carrier accident insurance and a spend manager solution to track and organize spending, set alerts, and develop customized budgets. The interest rate is based on the applicant’s credit score which makes this card a good choice for business owners with very good and excellent credit histories.

Purchase interest rate: CIBC Prime + 1.5 percent
Cash interest rate: CIBC Prime + 1.5 percent
Annual fee: none
Additional cards: no annual fee

There are plenty of premium business credit cards that feature low interest rates, introductory rates, no annual fees, extensive insurance coverage, and airmiles, rewards points, and cash back. Some cards also feature complimentary bonus points, complimentary concierge, free additional cards, and attractive discounts on office supplies, equipment, and other business-related expenses.

How to Afford a Summer Vacation When Money is Tight

July 5, 2019 By Samantha 1 Comment

Saving for a summer vacation can be difficult when money is tight. Many Canadians admit that they cannot afford it, and many leave vacation days unused. Going on vacation on a tight budget requires careful planning and smart choices to save money and enjoy time off. Here are some simple things to do to cut expenses and keep spending under control.

What Expenses Can You Trim?

Expenses fall in two categories – essential and non-essential. The category of non-essential expenses includes rented appliances, lottery, hairdressing, alcohol, and cigarettes. Essential expenses include things like baby items, car insurance, and property taxes. Non-essential costs are expenses that you can trim, whether dry cleaning, taxis, or pet insurance.

To save money for your summer vacation, you may need to cut down on expenses such as magazine and newspaper subscriptions, club memberships, dining out, and entertainment. Other leisure expenses that may ruin your budget include sports activity and leisure supplies, fine dining events, movie streaming subscriptions, and season passes and tickets.

Some habits are not only unhealthy but can be a real drain on your budget, be it drinking or smoking. Quitting smoking will help you to save a lot of money and get in good shape. There are other ways to save money such as shopping at farmers markets and discount grocery stores, using coupons, and collecting credit card rewards points to redeem for flights, room upgrades, etc.

Create a Spending Plan

The next step is to create a spending plan by looking at your disposable income and expenses. This is also a way to find out whether you need to cut down on expenses to stay on budget and to identify your priorities. The easiest way to create a spending plan is to list all of your monthly expenses, including childcare, grocery shopping, loan and credit card payments, mortgage or rent, and health and auto insurance. Other expenses to list include your phone, electricity, and water bills, car payments, subscriptions, and household maintenance. Make a list of your sources of income to find out what your gross income is. Sources of income include your salary, wages, and bonuses, investment and interest income, and alimony and child support. Once you know how much you earn and spend, you will be able to figure out how much you can save for your summer vacation.

It is also a good idea to divide your expenses into irregular and fixed expenses. The latter include debt payments, bank fees, utility bills, and rent. These are expenses that will not change on a monthly basis and are easy to budget for. The category of irregular expenses includes vehicle maintenance and insurance, health expenses, pest control, school supplies, and weddings and birthdays. In general, irregular expenses come up once or twice a year, and it is important to budget properly and save enough to meet them when they come up. There are also variable expenses such as recreation and sports, work lunches, personal care items, and groceries. This is the category to look into and identify expenses that you can cut back on to save for your holiday.

Go on a “Staycation”

Going on staycation is a cheap option when money is tight. Staying home, relaxing, spending time together, and going on day trips is one way to get a break and save money. What you can do is visit local water and amusement parks, visit science or history museums, and join free events, fairs, and festivals. There are plenty of sports and other outdoor recreational activities to try, be it canoeing, kayaking, tennis, or handball. Another idea is to sign up for a class or course to master some new skill. Depending on where you live, you can take a creative writing course, yoga class, or cooking class. This is also a good time to try a new hobby such as woodworking, sewing, candle making, or ice skating.

Go Camping

Going camping is also a way to spend time together and escape from your daily routine. Just pick a campsite and pack essentials such as utensils and cookware, navigational tools, personal items, sleeping bag, tent, folding chairs, and other camp essentials. Don’t forget to bring entertainment items to maximize fun and spend quality time together. Pack things such as kayaking or biking gear, playing cards, board games, camera, and binoculars.

When choosing a camping site, there are two options to look into – free and private. If your budget is tight, you are probably looking for a public campground where you don’t have to pay a fee. On the downside, public campgrounds may lack cooking facilities, bathrooms, and hookups. If you are more of an adventurous type, however, you may actually enjoy it. Look for areas that are designated as Crown Land. Remember that you are allowed to stay up to 21 days at the site that you choose, and then you have to move your camping equipment and gear at least 100 meters away from where you stayed.

There are plenty of camping sites in Canada’s national parks but you will have to pay a fee. These include the Berg Lake Campground in the Mount Robson Provincial Park, Main Campground in the Alice Lake Provincial Park, and Point Campground in the Peter Lougheed Provincial Park. Recreational activities abound, from fishing, hiking, and bicycling to swimming and canoeing.

Rent a Cottage for the Weekend

Renting a cottage is also a good idea when money is tight. One option is to rent off-season and not in peak months such as August and July. Many people rent via popular platforms such as CanadaStays and Airbnb, but it pays to contact owners directly and inquire about prices and availability. A third idea is to join a mailing list and check for special offers. Many rental agencies feature such lists and offer good deals on new properties, and it always pays to check for last minute deals.

Staying at new resorts and hotels is another way to save money when going on vacation. Look for newly renovated and constructed resorts and hotels that offer deals to attract customers.

Budgeting for Vacation Expenses

There are other things to do before going on vacation, including budgeting for costs such as public transportation, rental car fees, gas, and train and airfare tickets. Some travel expenses are easy to miss when planning a vacation, for example, vaccinations, foreign transaction fees, emergency expenses, and mobile phone charges. If you already have attractions on your must-see list, you may want to budget for tickets and passes for concerts, museums, and attractions. How much it will cost you to go on vacation also depends on the destination, whether you are staying at a hotel or campsite, whether you are eating out or packing your own food, and other factors. Other travel expenses to include in your budget are exchange rates, travel insurance, visa costs, baggage fees, and onboard food and beverage purchases.

If you are unsure how much it will cost you, you may use a vacation calculator to create a travel budget. You just need to enter details such as number of children and adults, number of travel days and lodging, number of fun days, and amount of money saved for the trip. You also need to enter details such as number of miles, cost per gallon, and your car’s miles per gallon rating. If you are travelling abroad, you can use a calculator that displays travel costs at your destination of choice.

Final Words

Going on vacation on a tight budget may look like a challenge but there are plenty of ways to save money to get the most out of your journey. Creating a spending plan and cutting down on expenses will help you to set money aside and see how much you can save to go on vacation. If money is tight, a staycation, long weekend in a cottage, or going camping are ways to spend quality time and enjoy life. Going on vacation is a good way to take a break from daily routine, stress, and work and family responsibilities. A summer vacation not only helps prevent burnout but also helps connect with your inner self. It is also something to look forward to, offering ample opportunities to meet new people, make new friends, and just have fun, relax, travel, explore new places, and try new things. Whether you are going on vacation or taking a city break, spending time away from home will boost your energy so that you return to the office refueled and with a smile.

motusbank – Meridian Credit Union Creates a New National Bank

May 3, 2019 By Samantha 2 Comments

A subsidiary of Meridian Credit Union, Motus Bank features a suite of financial products, including mortgages, personal loans, investment solutions, and savings and checking accounts. As a full-service digital bank, it will soon introduce banking services tailored to the needs of business customers. Motusbank is a Canadian federally chartered bank that opened doors in 2018 and is headquartered in Toronto, Ontario. It is also a member institution of the Canadian Deposit Insurance Corporation.

The idea behind the new bank is to offer customers across Canada the opportunity to access all services and products and to manage accounts online. In fact, virtually everything can be done by phone, mobile app, and online. The new bank is customer-oriented and offers checking and savings accounts with no monthly fees.

Meridian Credit Union

As Canada’s third largest credit union, Meridian offers personal and business financial products and online banking services. Individual customers are offered a selection of checking accounts, including U.S. dollar, senior, electronic, and limitless. Meridian also features youth, advantage, and high-interest savings accounts. There is an array of credit cards to choose from, with cash back, U.S., travel, and Visa benefits. Lines of credit, personal loans, and fixed and variable rate mortgages are also available. Travel insurance and mortgage protection are also offered as well as investment solutions such as registered retirement income funds and tax-free savings accounts. Business customers also benefit from a wealth of financial products, including business U.S. dollar checking and small business checking accounts. In addition to cashback credit cards, customers are offered business lines of credit, loans, and mortgages, and equipment financing and leasing. Meridian also features cash management and investment solutions and business planning assistance.

Competitors

Unlike financial institutions that have shareholders and pay profits, motusbank has members and the main goal is to offer personalized service, competitive rates and pricing, and the option to access all products online, including mortgages, investment solutions, lines of credit, and more.

Why Choose motusbank

This new full-service digital bank features a selection of investment, borrowing, and savings solutions with competitive rates. Given that Motus has no physical branches and associated overhead costs, customers enjoy affordable interest rates on mortgages and personal loans. Another benefit is the fact that decisions on applications for loans, mortgages, and other products are made quickly.

Personal Loans and Other Borrowing Solutions

Personal loans come with low interest rates that can be as low as 5.15 percent, and members can borrow up to $35,000. Secured lines of credit feature even lower interest rates (3.75 percent) to help customers secure financing for major purchases. It is quick and easy to apply, and customers only need to provide their social insurance number and information such as housing and family status and employment type. They are also asked about the amount required and the loan purpose, i.e. vacation, investment, home repairs, debt consolidation, or recreational vehicle, boat, or vehicle purchase. Motusbank also features fixed and variable rate mortgages with affordable interest rates that can be as low as 2.90 percent. 5-year fixed rate mortgages come with an interest rate of 3.09 percent. In comparison, Scotiabank offers an interest rate of 5.34 percent on the same type of mortgage, and the Bank of Montreal offers 3.54 percent. Secured home equity lines of credit also feature a low rate of just 3.75 percent. CIBC, for example, offers a rate of 3.95 percent on secured credit lines.

Savings and Checking Accounts

Motusbank also features a selection of checking and savings accounts, including RRSP, TFSA, and high interest savings accounts. Customers who choose to open high interest savings accounts can enjoy a rate of 2.25 percent. Savings accounts offer multiple benefits such as the option to make unlimited withdrawals and purchases, free-of-charge access to ATMs, no banking fees, no minimum balance requirements, and no monthly account charges. Motusbank also features checking accounts with no monthly fees, and customers enjoy unlimited Interac e-transfers. There are plenty of reasons to choose this type of account over products offered by other banks. The account has no minimum balance requirement and allows for unlimited bill payments and debit purchases. Another benefit is that every dollar earns 0.50 percent interest. Customers are free to make mobile check deposits and are offered 25 checks free of charge. Those who are travelling to the U.S. can access cash through the Cirrus or Accel ATM networks.

Investment Products

Motusbank also features investment solutions such as 5-year RRSP guaranteed investment certificates, 18-month TFSA GICs, and 18-month GICs. The 5-year RRSP GIC, for example, comes with a competitive interest rate of 3.25 percent, which makes it a good addition to a balanced investment portfolio. In comparison, CIBC offers non-redeemable 5-year RRSP GICs with an interest rate of 1.25 percent. Opening an account is quick and easy, and customers are asked to provide details such as personal information, term and length, and renewal option, i.e. reinvest in the same term or payout to the account. The bank features additional benefits such as tax free options, choice of non-registered and registered plans, and a low minimum investment of just $100. Terms vary from 1 month to 5 years.

Online Banking and Features

The online banking platform of motusbank offers convenient features to access and monitor investment accounts and view e-statements. Customers are free to download deposit forms and transactions and filter and sort accounts. Notifications, alerts, and secure messaging are also available. Depositing checks is also quick and easy and can be done from the customer’s phone. There is also an option to set up mobile alerts. The mobile app offers convenient features that allow customers to transfer money, make bill payments, and check account balances, including savings and checking accounts and tax free savings accounts. Mobile Bill Pay is a convenient feature that allows users to make bill payments and access more than 10,000 payees. The app can be used on Android and iOS devices.

The Money Mover service featured by motusbank offers customers the option to transfer large amounts of up to $10,000 daily and is free to use. Money is transferred within 3 business days. Users are also free to set up recurring and future transfers through the mobile app or online. Motusbank also features Interac payments to transfer amounts of up to $3,000 a day, and money is deposited immediately. Customers can make an unlimited number of transactions up to $10,000 a month.

The bank’s contact centre offers assistance to members and can be reached by dialing its international or toll free number. While the bank is fully digital, the fact that it is customer-centric means that the emphasis is on customer service. Motusbank also places an emphasis on safety and security, and all deposits are insured by the Canada Deposit Insurance Corporation.

Finally, the new bank also offers advice and practical information across a host of different topics related to borrowing, investing, and saving. The goal is to help customers learn more about dealing with debt, planning for retirement, preparing financially for a new child, and choosing the best investment solution. Other topics include home improvement loans, choosing between variable and fixed rate mortgages, down payments. The bank also features handy online tools such as mortgage prepayment calculator, savings calculator, retirement planning calculator, and loan and line of credit calculator. These online tools help customers figure out what size of mortgage to apply for, whether their monthly payments are affordable, and other important issues.

Top 6 Secured Credit Cards for Canadians

March 16, 2019 By Samantha 62 Comments

This post has been updated on March 16^th, 2019 to reflect recent changes and new developments in the secured credit card marketplace in Canada.

Many years ago I got my first credit card from CIBC, and because I had no credit history I had to settle for a secured credit card. The card had $500 limit, which I had to deposit with the bank – not much of a credit card :). I used it for 2 years making small purchases and paying it off every month diligently, which helped me establish good credit history. While many of the big banks advertise financial products targeted at recent immigrants, and people who simply have no credit history yet, the fact is that getting even a secured credit card is much tougher nowadays in Canada. Even Peoples Trust out of British Columbia, which was a major player in the Canadian secured credit card space, decided to discontinue their card in July, 2017.

In the early 2000’s all major Canadian banks offered secured credit cards, but this is no longer the case. I haven’t seen a secured card advertised by a major Canadian financial institution for a while, and I know for a fact that Scotibank and CIBC have no such products. Even if the rest of the big banks still have such cards on offer, they are not easy to find or their use is discouraged.

If you are in the market for secured card, you might also consider getting a unsecured credit card with low limit, which should be easier to get. You can try store credit cards like Canadian Tire MasterCard for example. While not perfect this card is somewhat easier to obtain, and with less and less financial institutions offering secured credit cards, it may be the right choice for you.

Find a solution to credit issues – get a secured credit card

Individuals with a thin credit file usually apply for a secured card because they have a more limited choice, especially when it comes to specialty cards with attractive rates and terms. They are also offered to those who are new to credit as well as recent immigrants, newcomers, and students. Secured credit cards are available from unions, small and major banks, and other establishments and help consumers establish credit.

How Secured Cards Work

Issuers require a cash deposit or security funds as a guarantee of on-time payment. It is usually equal to or larger than the limit offered. The only difference between secured and unsecured cards is the fact that security funds are required because financial institutions deal with high-risk borrowers who are more likely to default. Other than that, holders can use the card to make payments online and in-store, to pay bills, and so on.

Benefits for Users

The main benefit for users is that payments are reported regularly to major bureaus such as TransUnion and Experian. Customers who keep their balance low and make on-time payments gradually establish or reestablish credit. The timing of reports and the issuer’s reporting practices determine how long it takes before your card appears on your credit file.

What Is the Right Credit Card for You?

The choice of a secured card depends on whether you are a regular bank customer or a union member and other factors. When comparison shopping, look at the credit limit, grace period, and purchase and penalty interest. In general, whether a product is right for you depends on the issuer’s reporting practices. Some establishments report only missed and late payments while others report all payments and help build credit with time.

Who Is Eligible to Apply

Individuals with any credit profile qualify, from tarnished and fair to stellar. Legal residents and Canadian citizens of legal age are eligible to apply. You must be of the age of majority for the province or territory where you reside. Some major banks like TD even offer secured cards to customers who don’t have Canadian credit history, including international students and foreign nationals (temporary residents). The range of products available depends on different factors, including your credit rating and financial situation. When applying for a secured card, consumers are often asked about estimated monthly payments, including lines of credit, loans, mortgages, and other accounts. Financial establishments also request information about your rent or mortgage payments as well as income amount, employer, and sources of income. Many card issuers require that applicants have a verifiable permanent address in Canada and a verifiable source of income (i.e. proof of income).

Top 6 Secured Credit Card Picks

#1 – First Place
No-Fee Scotiabank Value^® VISA Card

A yet another credit card by Scotiabank, this is a great solution to transfer existing balances, even though this is not a secured card. The introductory rate is just 3.99 percent and is in effect within 6 months of opening the account. The intro rate applies to credit card checks, balance transfers, and cash advances. The interest-free period is 21 days. Special discounts are offered, including car rental discounts. Optional credit card protection coverage is also available in the event of job loss, disability, or another unfortunate event.
• Balance transfer fees: none
• Interest rate: 16.99 percent
• Annual fee: none

#2 – Second Place
Refresh Financial Secured Visa

This is a brand new secured credit card from Refresh Financial targeted at customers with bad or no credit, and people looking to build or re-build their credit. This secured Visa doesn’t require a credit check, so it should be very easy to get. Here are the main Refresh secured credit card features.

- Credit limit: $200 to $10,000
- Purchase Interest rate: 17.99 percent
- Annual fee: CAD $12.95

#2 – Old Second Place
Peoples Trust Secured MasterCard^®

This card is no longer available.

This secured card is a flexible solution designed for customers with limited or no credit exposure, new immigrants to Canada, students, and anyone looking to build credit. It is also ideal for borrowers with poor ratings such as discharged bankrupts and those with serious credit problems. Similar to standard cards, this MasterCard helps holders to improve their rating with time. Customers with a verifiable source of income qualify.

Credit limit: $500 or higher
Purchase Interest rate: 12.99 percent
Monthly fee: CAD $5.80
Interest rate on cash advances: 24.50 percent

#3 – Third Place
Home Trust Secured Visa Card

Home Trust also offers a credit card that helps consumers to enhance their credit profile. Virtually everyone applying for a secured Visa gets approved, and there are two options available:
• No annual fee with 19.99 percent interest rate
and
• Annual fee of $59 with 14.9 percent interest rate

In addition to attractive terms and interest rate, this card goes with benefits such as the option to add an authorized user and a credit limit that can be as high as $10,000. The minimum limit is $500. This card can be used to book a vacation, make purchases online and over the phone, and access cash.

#4 – Fourth Place
Vancity enviro Secured Visa

Vancity features a secured card with a deposit of just $500 and plenty of added and optional perks, including delay and lost baggage insurance, price protection, travel accident insurance, and others. This card is available to applicants who don’t have a previous Canadian credit history and to recent immigrants. There are different options to look into, for example, enviro Classic which is a good choice for customers who pay the full balance. This card helps borrowers to rebuild credit and is intended for customers who have experienced financial problems in the past.
• Annual fee: none
• Interest rate: 19.5 percent

#5 – Fifth Place
DCU Visa^® Platinum Secured Credit Card

This card is a low-cost alternative to other secured products and goes with travel and everyday benefits and optional overdraft protection. Added benefits include travel insurance coverage, auto rental collision damage waiver, and extended warranty. A major benefit is the fact that there is no minimum interest charge. As an added benefit, balance transfers and cash advances are free. The card also goes with Visa Checkout for safe and convenient shopping.
• Interest rate: 11.50 percent
• Penalty charges: 18.00 percent
• Annual fee: none

#6 – Sixth Place
RBC Visa Classic Low Rate

RBC features a low-cost card designed for customers who carry a balance. The card features optional and standard add-ons such as travel insurance and chip and PIN technology and can be used as a tool for debt consolidation to save on interest payments. Users are also offered additional cards with no annual fee. There is a card registration service for important documents and cards and auto payment service for ease and convenience.
• Interest rate: 11.99 percent
• Annual fee: $20

#7 – Seventh Place
Capital One^® Guaranteed Secured MasterCard^®

This card is ideal for individuals who need to establish credit history and goes with guaranteed approval. The credit limit varies and can be $300 or higher. The minimum security funds to deposit with the bank and access credit are in the amount of $75. Standard benefits that go with this card include referral to the closest ATM, zero liability, and others. Holders are free to make internet and in-store purchases, hotel reservations, car rental bookings, gas purchases, and more.
• Purchase rate: 19.8 percent
• Annual fee: $59
• Grace period: min 25 days

Fees, Limits, and Rates

The interest rate varies by issuer and is usually around 20 percent. It is in effect once the account has been activated. The rate on balance transfers and cash advances can be the same or different. In general, the rate is slightly higher compared to unsecured cards because financial institutions take more risk. Many applicants have a history of missed or late payments, maxed out cards, defaults, foreclosure, and even bankruptcy. This is why fees and service charges are usually higher as well. At the same time, there are many banks that feature credit cards with no annual fee, including Scotiabank and TD Canada Trust.

The grace period also varies from 19 to 25 days and applies to regular bank transfers and new purchases. Secured cards have a zero-day grace period on special bank transfers and cash advances. The available limit and security funds required depend on your financial circumstances and can be as high as $10,000 and as low as $500. Some banks even offer cards with lower credit limits. If you plan to make large purchases (one-time and big-ticket items), it is better to choose a card with a larger limit provided that you make timely payments and pay at least the minimum before the deadline (grace period). The minimum payment can be $10 or 3 percent or fees plus interest but this depends on the card of choice. Make sure you check the minimum monthly payment, especially if you only pay the minimum.

Bad Credit Personal Loans in Canada

March 10, 2019 By Samantha 79 Comments

This post has been updated on Mar. 10^th, 2019 to reflect new developments in the Canadian credit markets for people with less then perfect credit.

I receive many request daily from people who want to borrow small amounts of money short or medium term, people who usually have nobody else to turn to because they have bad credit. It breaks my heart reading these requests, but I’m not in the business of lending money and unfortunately I can’t help them out. The way I’m trying to help out is by educating people to avoid debt whenever possible, or at least to use forms of credit that won’t cripple them financially down the road. I understand that when you have a poor credit and the rent is overdue, or you have an emergency, sometimes you have to bite the bullet and borrow from a private lender that demand high interest on their loans, but such bad credit loans should be dealt with swiftly to avoid going into a never ending debt spiral.

I see signs of restricting personal credit in Canada everywhere lately. Even secured credit card providers like Peoples Trust has discontinued their popular secured card this summer. The big five Canadian banks have tightened credit issuing and mortgage underwriting. Getting a personal loan if you have a bad credit is no longer an easy task in Canada. You can still get a small bad credit personal loan from alternative lenders, but they come with much higher interest attached, and should be used only as last resort.

Although many Canadians would hate to admit it the real estate boom of the last 15 years is now over. This is not a real estate post, but the fallout of the declining real estate has direct implications on the ability of the average Canadian to access personal credit. The first victims of declining real estate values are of course people who rely on home equity lines of credit and refinancing to pay their bills and expensive to service credit card debt. The rising interest rate environment that we find ourselves in isn’t helping this either.

Finance companies, credit unions, online lending services, and some banks offer secured and unsecured loans to Canadians with bad and no credit. They usually offer short-term loans and a convenient and fast application process.

Getting a Bad Credit Personal Loan in Canada with No Credit Check

Online lending services and payday lenders offer loans for people with bad credit with no credit check. Some finance companies don’t run a credit check but require regular and stable income and look at the customer’s individual circumstances. Another option is to apply for a home equity or secured auto loan whereby your home equity or vehicle serves as collateral. Other loan providers include peer to peer lending services and payday lenders. Peer to peer services feature loans offered by individual lenders who may be more sympathetic and willing to offer loans to individuals with fair or poor credit.

Is There Such a Thing as Guaranteed Approval for Bad Credit Personal Loans

While many lenders advertise guaranteed approval, they usually require proof of income. In many cases, customers must have an active checking account. Guaranteed approval usually means that lenders accept applications from clients with a history of consumer proposals, bankruptcies, credit counseling, seriously delinquent accounts, and past collections. Thus loan providers have more lenient lending and credit requirements compared to banks. Guaranteed approval often means that loan providers accept applications from individuals with different credit profiles, and your credit score is not the most important factor.

How to Get Unsecured Personal Loans with Bad Credit

Comparison shopping is the best way to check rates, lending criteria, types of loans available, acceptable types of collateral, repayment schedules, and other details. Lending services usually request employment information such as length of employment, position held, gross income, monthly income, and employer. If applying together with a co-applicant, they must provide employment and personal information about the co-applicant, including net or gross income, age, and marital status. When applying for a bad credit personal loan in Canada, applicants also provide information such as mortgage payments and mortgage holders, number of dependents, current address, age, and social insurance number. Lenders want to make sure that customers will be able to pay down the loan within the agreed time frame. As a rule, loan providers are unwilling to deal with risky clients with no credit or financial record. This is the reason why they ask for proof of employment and financial stability to ensure prompt repayment. Customers with poor credit and excessive debt, for example, are at risk of default.

Top 5 Bad Credit Personal Loans Lenders in Canada

EasyFinancial, Capital Direct, Prudent Financial, Canada Lend, and Tribecca Finance are the top 5 lenders that offer secured and unsecured loans to individuals with poor credit.

EasyFinancial, for example, offers home equity and personal loans to customers who need cash to pay unexpected or medical expenses, pay a consumer proposal, or consolidate existing loan balances. The company also offers consumer loans to help borrowers repair or establish credit. Customers are offered home equity loans with long amortization periods of up to 40 years. EasyFinancial offers debt consolidation and personal loans to help clients reestablish credit. Clients are offered a bad credit personal loan of $500 to $10,000. The company advertises flexible and convenient payment options.

Capital Direct is another lending service that provides home equity loans and lines of credit to pay one-time, recurring, or unexpected expenses. Borrowers are offered lines of credit with variable repayment schedules and rates and debt consolidation options.

If you are looking for a bad credit loan in Canada, Prudent Financial is a good place to find small loans of up to $5,000. Approval depends on factors such as assets, debt, income level, and employment. The good news is that payments are reported to Experian, Equifax, and other credit bureaus.

Canada Lend is yet another lending service that offers second and bad credit mortgages, debt consolidation services, home equity lines of credit, refinancing options, and other financial solutions.

Secured Bad Credit Loans

Issuers provide secured loans to customers with bad and good credit. Loans are offered to borrowers with defaults, mortgage arrears, foreclosure, and missing loan payments provided that collateral is used to secure the loan. Collateral in the form of caravan, motorcycle, vehicle, real estate, or another valuable asset is required to secure the loan. Lending services advertise flexible repayment terms and schedules, easy application, and pre-approval options. The repayment term varies based on the borrower’s financial circumstances. The main benefit is that clients are offered larger amounts and lower rates compared to unsecured loans. At the same time, many lenders require that applicants are homeowners to qualify. The maximum loan to value ratio varies by issuer. When applying for a bad credit personal loan in Canada, clients fill in contact information, marital status, mortgage balance, collateral worth, amount requested, and other information. Some financial companies also ask about pay interval and employment (self-employed, student, housewife, employed, etc.)

Unsecured Bad Credit Loans

Some issuers offer unsecured credit in the form of short term loans with higher-than-average rates. There are loan providers that offer acceptable solutions but it is more difficult to get approved. One idea is to apply together with a co-signer. This can be a friend, relative, parent, coworker, or another person with good or stellar credit. Co-signers are 100 percent responsible for timely loan repayment and are taking a huge risk. It is also possible to get approved for a loan with less than perfect credit provided that you have stable income. Writing a loan application letter also helps. Include details such as repayment term and schedule and loan purpose and explain your financial situation. When applying for a loan, customers are asked to bring documents such as their financial and loan statements and income tax forms. Lenders are also interested in the applicant’s housing history, employment status, credit card debt, and outstanding loan balances. Customers also choose a loan term that can vary from 3 months to 10 years. They specify loan amount and purpose, for example, vehicle or furniture purchase, debt consolidation, home improvements, and others. Some lenders also offer loans for back to school expenses, funeral expenses, small rent arrears, holidays and travel, Christmas and wedding expenses, and unexpected expenses. With some lenders, you need to provide housing information, i.e. tenant of employer, housing association, living with parents, furnished or unfurnished tenancy, or homeowner.

Canadians Live Beyond Their Means

A survey conducted by the Canadian Payroll Association reveals that around 48 percent of Canadians live paycheck to paycheck. This is a troubling fact which shows that many people are financially vulnerable. Cheap credit partly explains why half of the respondents do not have an emergency fund for a rainy day. Yet, the fact that many Canadians spend their entire earnings and borrow on top means that they live beyond their means. A recent survey by the Canadian Imperial Bank of Commerce confirms this. The survey shows that 50 percent of respondents are unwilling to downgrade and trim unnecessary and non-essential spending. This is a worrisome finding in light of the fact that essential expenses such as rent and groceries already eat up a large percentage of households’ disposable income.

People who live paycheck to paycheck often carry a balance and only pay the minimum. Many have multiple credit cards and other debt such as personal loans and mortgages. They never set a monthly budget and short – and long – term financial goals. The problem with living large is that many people are unable to save at least 5 percent of their disposable income. This puts them in a vulnerable position when faced with a major crisis such as loss of income or employment, divorce, or prolonged illness. Then many are forced to resort to high-interest rate loans to pay bills and make ends meet.

Using Payday Loans

A survey by the Financial Consumer Agency shows that 4.3 percent of Canadians resorted to payday loans in 2014, up from 1.9 percent in 2009. The majority of respondents or 45 percent borrowed to pay emergency expenses such as car or household repairs while 41 percent used the money to pay expenses such as electricity, water, and heating bills. And while 70 percent of respondents used their paycheck to pay off the balance, 7 percent of people admit that they took a new loan. Others used their credit card, sold something of value, used an overdraft, or borrowed from family or friends. One of the main problems is that many people are not aware of the fact that payday loans come with very high interest rates. Some 43 percent of respondents admitted that they were not aware of this. The majority of respondents or 88 percent reported that they were unable to access a line of credit. Poor credit rating and history are major obstacles for many borrowers who are forced to resort to costly alternatives.

Accumulating Too Much Credit Card Debt

According to an Ipsos poll, Canadians owe over $8,530 in consumer debt on average, and 14 percent of respondents carry balances between $10,000 and $24,999. It is obvious that Canadians tend to accumulate excessive card debt, and data by Bankruptcy Canada confirms this. Some 75 percent of people carry a balance on a monthly basis while 25 percent pay it in full. The problem with credit cards is that many opt for products with high interest rates just to take advantage of complimentary bonuses, discounts, and rewards points. Many are also tempted to make card purchases just to collect points.

Credit History Problems

A good score is one in the range of 660 – 700 but data by Refresh Financial reveals that some 20 percent of Canadians have scores that are below 600. Data by Equifax Canada shows that close to 3 percent of borrowers have a very low score below 520, which puts them in a high-risk category. At the same time, this is not surprising given that 65 percent of Canadians check their score once a year or have never bothered to check it. What is more, people of working age hold 2.2 credit cards on average. Card debt also makes for about 5 percent of the total debt carried in Canada. The problem is that it accounts for 15 percent of all monthly payments and increases to 88 percent if borrowers were to pay off the balance in full.

Poor credit rating is a serious problem for many Canadians because it leaves them with few options for accessing new credit. Brick-and-mortar financial institutions are often unwilling to approve customers with financial problems as they are viewed as less trustworthy. In times of financial hardship, life crisis, or emergency, borrowers with poor credit are forced to resort to payday lenders and pawnbrokers. And the problem is that this often leads to a spiral of debt.

Making Poor Financial and Investment Decisions

Purchasing Decisions

Bad financial decisions are usually the result of poor money management skills and lack of financial literacy. People who are financially literate have good knowledge of basic concepts such as net income, annual percentage rate, amortization, compound interest, certificates of deposit, etc. People with poor money management skills lack basic knowledge and make bad purchasing decisions. They tend to splurge and buy non-essential items such as alcohol, tobacco, and candy even when they are short on cash. Many people cannot prioritize and tell the difference between non-essential and essential spending. Examples of essential expenses include things such as baby items, laundry, health-related expenses, rent, and utility bills. The list of non-essential expenses, on the other hand, includes items such as video games, haircuts, lottery tickets, dry cleaning, vacations, etc. These are things that people normally can live without. Many people make poor purchasing decisions like buying on credit and buying items they don’t really need. They also tend to make impulse purchases that they cannot really afford. Some people also buy expensive things just to show off, whether it is a new phone or laptop, vacation abroad, or a luxury vehicle. Outdoing family, friends, or colleagues is a poor idea, especially for people who live from paycheck to paycheck and buy expensive items on credit.

Investment Decisions

Many people also make poor investment decisions, and the main reasons are that they set the wrong investment goals and have a lower risk tolerance than they think of. Persons who have low risk tolerance and basic knowledge are usually advised to invest in products such as municipal bonds, certificates of deposit, and savings accounts. Those with extensive experience and high risk tolerance often benefit from investing in products such as hedge funds, penny stocks, and futures and options. Other products that help savvy investors to make good profits include leveraged ETFs, junk bonds, spread betting, venture capital trusts, and unregulated collective investment schemes. While high-risk products offer high returns, they are a good choice for people with knowledge of advanced concepts such as contingent deferred sales charge, capital gains reinvest NAV, dollar cost averaging, and Lipper ratings. Finally, savvy people know the difference between short-term and long-term investments. Short-term products include municipal bonds, short-term bond funds, and certificates of deposit. Long-term products are real estate, long-term bonds, real estate crowdfunding, and real estate investment trusts.

Top 12 Best Credit Cards in Canada for 2019

January 12, 2019 By Samantha 16 Comments

This post has been updated on January 12th, 2019 with our most recent reviews and rankings of popular credit cards offered to Canadian consumers.

The best credit cards offered by Canadian finance companies, unions, and banks feature money back, airmiles and bonus points, comprehensive insurance coverage, no or low foreign transaction fees, and plenty more.

	Credit Card	Interest Rate	Annual Fee	Type
1.	Scotia Momentum Visa Infinite	20.99 %	$120	Cashback Credit Card
2.	SimplyCash American Express	19.99 %	No annual fee	Cashback Credit Card
3.	Tangerine Money-Back Credit Card	19.95%	No annual fee	Cashback Credit Card
4.	Scotiabank Gold American Express	19.99 %	$120	Travel Credit Card
5.	BMO World Elite MasterCard	19.99 %	$150	Travel Credit Card
6.	Home Trust Preferred Visa	19.99 %	No annual fee	No Foreign Transaction Fees
7.	Rogers Platinum MasterCard	19.99 %	No annual fee	No Foreign Transaction Fees
8.	Scotiabank Platinum American Express	19.99 %	$399.00	Insurance Coverage
9.	BMO Cashback World Elite MasterCard	19.99 %	$120	Insurance Coverage
10.	Scotiabank L’earn Visa Card	19.99 %	No annual fee	Student Credit Card
11.	Scotiabank Scene Visa Card	19.99 %	No annual fee	Student Credit Card
12.	Refresh Financial Secured Visa Card	17.99 %	$12.95	Secured Credit Card

Best Canadian Cashback Credit Cards

There are credit cards that feature extra cash back during the promotional period as well as no annual fee, generous welcome bonuses, and no categories or limits.

1. Scotia Momentum^® Visa Infinite Card

Offered by the Bank of Nova Scotia, the Scotia Momentum Visa Infinite Card, for example, goes with 4 percent cash back on groceries and gas. The card also features concierge service, travel accident insurance, flight delay insurance, car rental discounts, and a lot more. Optional protection is also offered in case of critical illness, lockout, strike, job loss, or disability. Customers with no credit history are welcome to apply. However, there is a minimum income requirement of $60,000 a year. Supplementary cards are available to earn more cash back.

There are plenty of added benefits for holders. They are offered discounts on wine, vineyard tours, wine tastings, access to exclusive and premier events, hotel room upgrades, and more.

Purchase interest rate: 20.99 percent
Balance transfer and cash advance rate: 22.99 percent
Annual fee: *$120 waived for the first year. For accounts opened by October 31, 2019
Credit limit: $5,000 or higher

2. SimplyCash^TM American Express

The SimplyCash American Express Card is also a great choice to earn cash rewards and goes with supplementary cards, no annual fee, and entertainment and travel benefits. Customers earn 5 percent back during the 6-month promotional period and 1.25 percent back afterwards. Additional benefits include car rental theft and damage coverage, promotional balance transfer rate, shopping discounts, weekend gateway deals, and access to exclusive events such as theater performances and concerts.

Funds advance rate: 22.99 percent
Purchase rate: 19.99 percent
Annual Fee: No

3. Tangerine Money-Back Credit Card

Another option to look into, the Tangerine Money-Back Credit Card goes with no annual fee, 0.5 back on regular purchases, and 2 percent back on select purchases (categories of your choice).

Best Travel Credit Cards

Canadian travel rewards cards feature travel benefits and opportunities, rewards programs, welcome bonuses, double or extra points on travel expenses and gas, and so on. Some cards feature deals and saving opportunities as well as VIP lounge access, travel upgrades, free baggage, and airfare discounts. There are added incentives such as access to luxury airport lounges, car rental and hotel discounts, and comprehensive insurance, including car rental collision, flight delay, and trip delay. Most issuers advertise cards with no blackout dates and other restrictions and limitations.

4. Scotiabank^® Gold American Express^®

The Scotiabank Gold American Express Card is the perfect choice for customers with no credit history and for newcomers to Canada. The card features add-ons and perks such as special offers, access to airport lounges, concierge service, and travel insurance. Concierge services cover things like show and concert ticket reservations, restaurant reservations, and more. The comprehensive insurance coverage includes lost and delayed baggage, flight delay, trip cancellation, travel accident insurance, etc. The best part is that there are no travel restrictions, and points can be redeemed at any time.

Balance transfer rate: 22.99 percent
Cash advance rate: 22.99 percent
Purchase rate: 19.99 percent
Annual fee: $120

5. BMO^® World Elite^TM MasterCard^®

Offered by the Bank of Montreal, the BMO World Elite MasterCard is also a great choice to earn rewards points and take advantage of a host of added benefits. The list of perks includes complimentary lounge access, medical and travel coverage, roadside assistance, and a generous welcome bonus of 35,000 points on purchases over $3,000 during the first 3-month period. Holders earn 2 points on all purchases and 3 points on entertainment and restaurant and travel purchases.

Annual fee: $150
Purchase rate: 19.99 percent
Cash advance rate: 22.99 percent

Best Credit Card with Low/No Foreign Transaction Fees

No foreign transaction fee cards come handy when making purchases abroad or overseas. This is because conversion and foreign transaction fees hike up your card bill. Banks and finance companies offer cards with added incentives such as travel points, complimentary one-time bonuses, no annual fee, money back, and complimentary travel insurance. Some cards also feature cash statement credit, roadside assistance, cash sign-up bonuses, and supplementary cards. There are plenty of perks to look into, including discounts on hotel bookings, extended travel insurance, travel enhancement credit, and a lot more.

6. Home Trust Preferred Visa

The Home Trust Preferred Visa card is one option to consider to avoid foreign transaction fees. In addition to no conversion surcharges, the card goes with guaranteed hotel bookings, complimentary roadside assistance, 1 percent money back, and auto rental loss and collision coverage. There are no cashback limits and restrictions and no annual fee. Emergency cash is also available for peace of mind and so is emergency card replacement. To apply for the Home Trust Preferred Visa customers are asked to provide details such as address and name of current employer, annual income, previous address, etc.

Cash advance rate: 19.99 percent
Purchase rate: 19.99 percent
Grace period: 21 days or more

7. Rogers^TM Platinum MasterCard^®

Another great card with a low foreign transaction fee, the Rogers Platinum MasterCard is offered by the Rogers Bank and goes with a complimentary bonus, money back rewards, and an annual fee waiver. Cash back can be redeemed at different locations, including Fido and Rogers as well as for merchandise, tickets, subscriptions, and more. Points can be redeemed for pre-payed services as well (like Chatr). The Pay with Rewards app by Rogers is a convenient way to redeem money back rewards.

Foreign transaction fee: 2.5 percent of the amount/
Balance transfer and cash advance rate: 21.5 percent
Purchase rate: 19.99 percent
Annual fee: none

Best Credit Cards with Insurance Coverage

Insurance credit cards feature comprehensive coverage, including medical, emergency travel, baggage loss, trip cancellation, and other types of coverage. Providers offer a host of added benefits such as free travel, money back, exclusive shopping and travel offers, and no or low annual fees. Customers gain access to tickets for music and theatre performances, fine dining experiences, perks at resorts and luxury hotels, concierge, and more.

8. Scotiabank Platinum American Express^®

This credit card by the Bank of Nova Scotia allows users to collect rewards points for select and everyday purchases. They earn 1 point for each dollar on regular purchases and 4 points per dollar on entertainment and dining, grocery purchases, and gas. There are no travel restrictions, and points can be redeemed at anytime and anywhere. The card also goes with a large minimum credit limit of $10,000. Users are offered 7 types of insurance coverage, including trip interruption and cancellation, emergency medical, lost and delayed baggage, flight delay, etc. Added benefits include premium concierge, VIP pass for exclusive events, complimentary lounge, and a lot more. Customers also enjoy access to special events and experiences, including dining, theatre shows, films, music, and shopping.

Purchase rate: 19.99 percent
Balance transfers/cash advances: 22.99 percent
Annual fee: $399.00

9. BMO^® Cashback^® World Elite^® MasterCard^®

Also a great card with comprehensive coverage, the BMO Cashback World Elite MasterCard goes with a host of benefits and incentives, including cash back, supplementary cards to earn more. Customers are offered insurance coverage, including extended warranty and purchase protection, collision damage waiver on car rentals, as well as out of country and out of province emergency medical coverage. In addition, holders earn 1.5 percent back on all purchases charged on the card. Cash can be used in the form of credit or held in an investment or savings or checking account. The minimum income requirement is $80,000 for individual cardholders and $150,000 for households.

Interest rate on purchases: 19.99 percent
Interest rate on cash advances: 22.99 percent
Annual fee: $120

Best Student Credit Cards

Many banks in Canada offer student credit cards, including Scotiabank, TD Canada Trust, RBC, and others. Student cards feature multiple benefits such as competitive interest rates, no annual fee, and rewards points. Users earn points on pharmacy and grocery purchases, gas, bills, and more. Some cards offer extra points on entertainment, restaurant, and travel purchases. The best part is that banks have lenient requirements when it comes to credit rating.

10. Scotiabank L’earn^TM Visa Card

Scotiabank offers a student Visa that allows customers to build credit with responsible use and timely payments. Applicants with little credit exposure and no credit history qualify and so do newcomers to Canada. The card goes with no annual fee, money back, car rental discounts, and other benefits. Optional protection for unexpected events is available, including death, critical illness, loss of employment, and others. Students also earn cash back at a rate of 1 percent. The minimum credit limit is $500, and the grace or interest-free period is 21 days or longer. Applicants are asked to provide personal and school information such as expected graduation date, start date, and name of college, university, or another institution.

Cash advance rate: 22.99 percent
Purchase rate: 19.99 percent

11. Scotiabank Scene^® Visa Card

Also a great card by the Bank of Nova Scotia, the Scotiabank Scene Visa Card allows customers to earn rewards points on select and regular purchases. Users earn 5 points per dollar at Cineplex, both online and at Cineplex theatres, and 1 point on regular purchases such as clothing, transportation, groceries, meals, and so on. Thus, customers who spend $200 on movies a month will earn a total of 1,000 points. During the first 3 months, the first $500 spent on regular purchases earn a bonus of 2,500 points. Points can be redeemed in different ways – for meals, movies, and more. There is a minimum annual income requirement – $12,000.

Annual fee: none
Cash advances: 22.99 percent
Purchase rate: 19.99 percent

Best Secured Credit Cards and Credit Cards for Bad Credit

Secured cards allow customers with poor and tarnished credit to rebuild their history and rating. This is good news for customers with missed and late payments and a history of delinquencies, foreclosures, and other negative events. Making regular and timely payments over a certain period of time allows borrowers to rebuild credit and apply for loans and cards with beneficial terms. Some secured cards go with higher interest rates, but this is not always the case. The credit limit varies and is usually equal to or lower than the deposit made. The deposit acts as a guarantee of timely payment. This is the reason why customers are approved without credit check. What is more, some providers offer the option to add an authorized user free of charge. Other benefits include Visa and MasterCard benefits, no annual fee, low rate options for authorized and primary cardholders, and more.

12. Refresh Financial Secured Visa Credit Card

This secured Visa by Refresh Financial helps customers to improve their credit score and goes with a competitive interest rate and low annual fee. Virtually everyone gets approved, regardless of their rating. In addition to fast and easy approval, there are added benefits for users, among which free financial education and the opportunity to build savings. The financial intelligence training program offers short educational movies to teach customers how to set financial goals, build personal wealth, save for the future, and use credit cards responsibly. Responsible use is obviously the key to building or rebuilding credit. Wise money management is also essential to stay away from debt in the long run and build a financial safety net. Users also learn how credit works and how to create a personal brand.

Interest rate: 17.99 percent
Annual fee: $12.95

Top 6 Credit Cards for Bad Credit in Canada 2019

January 10, 2019 By Samantha 171 Comments

This post has been updated on January ^10th, 2019 to reflect recent developments in the Canadian financial and credit markets.

Accessing credit is never easy if you have anything but pristine credit score. The most common form of borrowing of course is a credit card, and there are many Canadian financial institutions that offer variety of cards targeted at different market segments. The bad credit credit card market in Canada is really under-served with many of the big players withdrawing their financial products including Peoples Trust who stopped offering their secured credit card, and Affirm financial who also no longer offer their credit cards for bad credit. Home Trust still offer a secured credit card, but they are very picky and getting one from them is not an easy task. Still there is hope for Canadian consumers with bad credit, as a new player called Refresh Financial has entered the secured/bad credit card marketplace. Refresh offer credit cards for borrowers with bad credit, and the good news is they do not do a credit check. The card is relatively easy to qualify for, however keep in mind that this is a secured card, and you will have to come up with the deposit to get one. As the credit conditions get tighter in Canada it will get harder to get a credit card if you have a poor credit, however don’t get discouraged – just check our list of card below and use it as a starting point in your quest for credit card.

There are different options for customers with poor credit, from payday loans and cash advances to secured lines and credit cards for bad credit.

Do You Need a Credit Card if You Already Have Bad Credit?

This depends on your lifestyle, financial literacy, and spending habits but a credit card can actually help build a healthy score. Timely payments allow users to rebuild credit. If you often make financial blunders and are knee-deep in debt, you may want to learn more about credit first.

Can You Get a Credit Card with Bad Credit?

Some lenders offer cards to borrowers with poor and average credit. They often offer cards with a lower limit and higher interest rates because they are considered to be high risk.

Does a Credit Card Help You Rebuild Bad Credit? Secured Credit Cards Explained

A credit card is a useful tool to reestablish credit unless you make late payments. Missed payments also affect your score. Avoid prepaid cards because payments are not reported to the major bureaus. Other cards, including secured and department store cards, help build credit. To get a secured card, clients are asked to make a deposit which is higher or equal to the card’s limit.

Types of Credit Cards for Bad Credit

Secured Credit Cards

Secured cards offer many benefits, and one is that it is easier to get approved compared to standard credit cards and unsecured loans. The reason is that financial establishments take no risk. Cardholders use their own money (the deposit made) to make purchases. Lenders will not return the deposit in case of default. They refund the deposit made when the customer decides to close the account. The payments are usually reflected in the borrower’s credit report. The limit normally varies from $200 – $500 to $5,000. Many issuers advertise low annual fees in the range of $10 – $30.

Low Interest Credit Cards

Low interest cards are offered by major unions, banks, finance companies, and online lending services. The main benefit for users is that they save on interest charges. Some issuers offer low interest cards to borrowers with less-than-perfect credit and feature perks such as gas rewards, cash back, payment alerts, and others. The credit line is usually lower, for example, $500 – $1,000, but some companies advertise opportunities for line increases provided that cardholders make timely payments. It is important to ask whether payments are reported to TransUnion or Equifax on a regular basis.

Guaranteed Credit Cards

Guaranteed approval cards by MasterCard and Visa are also offered to borrowers with less than perfect and tarnished credit. While some issuers advertise guaranteed or instant approval, they offer secured versions whereby the deposit serves as a guarantee of timely payments. They are available to consumers who need credit improvement and feature standard benefits such as price protection, travel assistance, baggage delay coverage, and others. Basically, issuers that offer guaranteed cards have more lenient or minimum requirements for approval. They may advertise no employment or credit checks and no application or processing fees.

Prepaid Credit Cards

Prepaid cards allow users to make purchases and payments but are not the best solution for rebuilding credit. Payments are usually not reported. Still this is one option for customers with bad credit and a history of consumer proposals, foreclosure, bankruptcy, and seriously delinquent accounts. There are different reload options, including in person, online, and through direct deposit. Some issuers advertise no-fee cash withdrawals. Prepaid cards also feature online bill pay options, balance alerts, free ATM withdrawals, business and payroll programs, refer-a-friend bonuses, and other benefits. Many issuers advertise no activation or application fees, free online banking, online statements, and free direct deposits.

Store Credit Cards

A department store card is yet another option for borrowers with bad credit and offers plenty of added benefits. Cardholders benefit from perks such as promos and discounts, sales, savings on major or one-time purchases, coupons, and other benefits. Some department stores even advertise interest-free financing. Holders enjoy a zero introductory rate for a certain period, for example, six months. However, department store cards usually go with higher charges than secured and standard credit cards. While the rate is slightly higher, this is one option for applicants with a thin credit file and borrowers who need a credit boost.

Where Can You Find Credit Card Lenders for People with Bad Credit?

Major financial establishments such as RBC, BMO, and other big banks offer cards for bad credit.

Affirm MasterCard^®

This card is no longer available.

Affirm Financial Services specializes in providing credit solutions for Canadians who may have difficulty obtaining a credit card or loan from traditional financial institutions. Here are the most important Affirm MasterCard® features:

True credit – no security deposit required
Credit limit up to $3,000
Use it anywhere MasterCard® cards are accepted
Fixed interest rate – 29.99% for homeowners and 34.99% for non-homeowners
Reports to credit bureaus every month

This card is issued by Peoples Trust Company pursuant to license by MasterCard® International Incorporated. MasterCard® and MasterCard® Brand Mark are registered trademarks of MasterCard® International Incorporated.

No-Fee Scotiabank Value^® Visa Card

The Bank of Nova Scotia features the No-Fee Scotiabank Value Visa Card which is available to debt-ridden borrowers with credit problems. The bank offers benefits such as card protection, an introductory rate of 3.99 percent, and car rental discounts. Additional benefits include itemized transactions and supplementary cards. The introductory rate applies to balance transfers and cash advances, which makes it a great choice if you plan to transfer high-interest balances to a low-interest card. The low introductory rate helps borrowers to pay down existing balances faster and get rid of debt.

• Interest rate: 16.99 percent
• Annual fee: zero
• Credit limit: $500 or more

Refresh Financial Secured Visa

This secured card is a new product from Refresh Financial targeted at customers with low credit score or no credit. The card can be used to re-build credit score, and as it doesn’t require a credit check, it may be your best chance for getting a credit card. Here are the main Refresh secured credit card features.

Credit limit: $200 to $10,000
Purchase Interest rate: 17.99 percent
Annual fee: CAD $12.95

Peoples Trust Secured MasterCard^®

This card is no longer available.

Peoples Trust Secured MasterCard is ideal for those who are new to credit, consumers with credit problems, new immigrants, and students. Holders can use it just like a regular card to make hotel bookings and everyday purchases, car rentals, online purchases, and anything else. This card also allows consumers to make cash advances and build credit over time. Peoples Trust advertises almost guaranteed approval, regardless of credit profile.

Minimum deposit: $500
Interest rate: 12.99 percent
Monthly fee: CAD $5.80
Monthly fee (additional cards): CAD $2.95

Home Trust Secured Visa Card

The Home Trust Secured Visa Card is another option that requires a security deposit of at least $500. The limit is based on the deposit made and ranges from $500 to $10,000. There is a low-rate option that goes with an interest rate of 14.9 percent. The standard rate is 19.99 percent and there is no annual fee. The low-rate option goes with a fee of $59. This card is offered to consumers with bad credit and everyone gets approved. If you have less than perfect or poor credit, this card will help you to build or reestablish your credit history. You can use it to book a hotel room, make purchases online and by phone, pay bills, pay for gas, and more.

Apply Now 14.90% $59 annual fee or $5 per month Apply Now 19.99% No annual fee

BMO^® Preferred Rate MasterCard^®

The BMO Preferred Rate MasterCard is a card advertised with no annual fee and an interest rate of 17.5 percent. The card also features a long interest-free period of 21 days. While applicants with bad credit get approved, those with a history of bankruptcies do not qualify. If you have filed for bankruptcy over the last 7 years, your application will be declined. BMO also requires employment and income information. Customers are offered perks and benefits such as:

• Low-rate options (11.9 percent)
• Travel benefits
• Purchase protection
• Extended warranty
• Roadside assistance
• Medical protection
• Trip cancellation coverage

Capital One^® Guaranteed Secured MasterCard^®

The Capital One Guaranteed Secured MasterCard, for example, features guaranteed approval and a limit of $300 or higher. It is a good choice for customers with no credit and tarnished credit. The good thing about this card is that you can use it like a standard card – to make bookings, for car rentals, online purchases, in-store purchases, and more. Capital One features standard benefits such as emergency cash advances and card replacement and zero liability.

• Interest rate: 19.8 percent
• Annual fee: $59

TD Emerald Visa Card

The TD Emerald Visa Card is also a good choice for bad credit borrowers and goes with benefits such as:

• Low annual fee of $25
• Security and purchasing convenience
• Automotive benefits
• Travel benefits
• Medical insurance

Applicants are allowed to add up to three cardholders. The card goes with a competitive variable rate of 12.75 percent and is a great option for borrowers with bad credit, students, and newcomers to Canada. Cardholders are offered trip interruption coverage, trip cancellation insurance, car rental discounts, and other perks. TD Emerald Visa is also advertised as a balance transfer card for debt consolidation.

RBC Visa Classic Low Rate

The RBC Visa Classic Low Rate is yet another card with a low interest rate of 11.99 percent and an annual fee of $20. Additional cards are available at no added cost. This option is a great choice for those considering debt consolidation. Major benefits include free travelers checks, worldwide acceptance, easy application, and others. Optional travel insurance is also available to protect customers in case of loss of job or illness. Customers benefit from autopayment options, cash advances, and quick application processing. This card is also an excellent choice for debt consolidation. You can use it to make one-time or larger purchases.

What to Do Next?

Once you have been approved for a low rate, department store, or secured card, it is time to learn how to manage credit responsibly. This means timely and regular payments to avoid penalty fees and charges. Late and missing payments also affect your score and chances to get approved for low-cost unsecured loans, LOCs, and premium credit cards. Avoid using multiple cards because it is more difficult to keep track of due dates, payments, and other details. Check your financial statements regularly to track your spending and payments. Using online banking is a great way to view your statements, payment history, and transactions. Make sure you check your credit report for mistakes and omissions. Consumers are entitled to receive a free report once a year.

If you have other balances, try to pay down your auto, consumer, and other loan balances to boost your score. The goal is to maintain a debt to income ratio of 30 percent or lower. Paying down small balances on different cards helps improve your score. Pick one or two cards with affordable rates and use them for payments and purchases.

Keep in mind that credit cards are intended for regular, small purchases and unexpected expenses, for example, utility and medical bills, auto insurance, plumbing and electrical problems, car repairs, and others. You can use your card for grocery shopping, bill payment, trips to the ER, car maintenance, vehicle registration fees, and other small expenses. It makes no sense to buy big-ticket items on a credit card. It is better to use a low-cost unsecured loan instead. Otherwise, you will end up paying a huge balance, and your score may suffer as a result.

If you have poor credit and find it difficult to manage your finances, you may want to contact a credit counseling service. They offer financial education to teach borrowers how to manage debt responsibly. The goal is to gain financial stability and control and make sound credit and borrowing decisions. Specialists negotiate with creditors, help customers to calculate their debt to income ratio, sort out their finances, and more.

How Would Filing for Bankruptcy Affect Your Borrowing Power?

November 12, 2018 By Samantha Leave a Comment

Filing for bankruptcy can negatively affect your borrowing power because your credit score is likely to plummet. This depends on your credit profile, however. If you have fair or bad credit and multiple negative items listed, then you would expect a low to moderate drop. Borrowers with spotless or very good credit, however, see a significant drop.

What to Expect

It is a good idea to learn more about bankruptcy as to know what to expect. This is a last resort for borrowers who have exhausted all other options such as counseling, negotiation with creditors, debt consolidation. Consolidation loans, for example, are offered to borrowers to combine multiple debts and benefit from a single payment. It is a form of refinancing for borrowers with a lot of outstanding debt. Bankruptcy is a solution for people who owe more money than the total value of their assets. In fact, if you owe $1,000 or more and are unable to keep up with payments, you meet the criteria.

Bankruptcy is a solution for borrowers who have unsecured debts, including personal loans, vacation loans, credit cards, lines of credit, etc. Those having a lot of equity may not be allowed to keep their home. When it comes to personal belongings, there are certain exemptions to look into. The list includes things like retirement savings and pensions, heating fuel and food, and farm supplies, equipment, animals, and land. When filing for bankruptcy Canada based borrowers are also allowed to keep their vehicle, furniture, clothing, and health aids. Exemptions vary from province to province. In Alberta, for example, you are allowed to keep your social allowance, farm land, principal home, farm property, tools of trade, household appliances, and food. In Manitoba, you are also allowed to keep some life insurance policies, locked-in pension plans, religious items, etc. In any case, bank accounts are not exempt.

The Bankruptcy and Insolvency Act governs receiverships, commercial and consumer proposals, and bankruptcies. A bankruptcy trustee is appointed to represent the borrower’s estate. Once you have filed, you can expect to receive a discharge in about 9 months unless a court orders an extension.

Your Borrowing Power

After you have filed for bankruptcy, your borrowing power will be seriously affected because you are considered a high-risk customer. There are some things to do to improve your chances of getting approved for a loan or a credit card.

Get Your Discharge

The first step is to get your discharge in a timely manner. Once you do this, it is time to start rebuilding your credit.

Apply for a Secured Card

There are several options to look into, among which secured loans and secured credit cards. A secured credit card is easier to get even if you have a tarnished credit score. The reason is that your savings account serves as collateral, i.e. guarantee of repayment. This makes it less risky for financial institutions. Secured cards are offered to borrowers with a history of poor credit and limited credit exposure. The limit depends on the amount deposited and your score.

A Store Card

Another option is to apply for and open a department store card but interest rates tend to be significantly higher compared to other products. This can be a good solution if your department store offers generous discounts but there is more. A store card can help you to improve you score if you make occasional purchases (as opposed to many purchases). This will help you to lower your utilization rate. A low utilization rate proves to financial institutions that you are a low-risk borrower. Aim at a utilization rate of about 15 percent to help rebuild your credit score. This is provided that you make timely payments and use the line in a responsible manner. In fact, responsible use is the key to rebuilding credit. Late and missed payments show on your report and negatively affect your score. You don’t want this if you declared bankruptcy recently.

An Installment Loan

There are other things to do to boost your borrowing power, and one is to get an installment loan. If you made regular payments on your department store or secured card over the past couple of months, you may want to visit your local bank. Ask what they have on offer. If you get approved for a small installment loan, make regular payments. When it comes to the loan amount, it is always better to be on the safe side and start small. Borrowers with poor credit are usually offered very high interest rates, which adds to the cost of the loan. It is always good to have a credit mix, i.e. personal loans, credit cards, etc. A good mix means diversity and shows financial institutions that you can handle different types of credit. Be careful when applying. Multiple applications can have a negative effect on your score.

Develop Healthy Financial Habits to Deal with Debt

Finally, the most important thing is to develop healthy money and credit management habits to avoid debt and bankruptcy. If you are unsure where to start, you may want to contact a bankruptcy advisor or financial advisor to learn the basics. Your financial advisor will help you learn how to budget, save, and set long- and short-term financial goals. They will help you build a financial cushion (an emergency fund) for a rainy day and emergency situations. A financial advisor will also help you develop a personalized plan based on your individual circumstances. A personalized, step-by-step plan can help you a great deal in terms of rebuilding credit, when to start, what financial products to apply for, and more. When choosing an advisor, make sure you ask whether they offer free information, what services they offer, how much they charge, etc. Ask whether they have monthly or set-up fees.

Once you succeed in rebuilding credit, you will have plenty of choice when it comes to credit cards and loans with attractive terms, low than average rates, and incentives and perks.

Student Loans in Canada – The Ultimate Guide

September 9, 2018 By Samantha Leave a Comment

There are plenty of ways to pay for college in Canada, and many young people opt for student loans to pay tuition fees, room and board, textbooks, books and other expenses.

Student Loan in Canada Overview

Who Offers Student Loans

Financing is available from different sources, including the federal and provincial governments as well as private providers such as banks, finance companies, and credit unions. The Government of Canada offers federal loans to students enrolled in designated universities and colleges. The provincial governments also offer funding in the form of grants, bursaries, and loans. The rules and requirements vary by province and territory. Quebec, the Northwest Territories, and Nunavut, for example, have their own funding programs, and federal loans are not available. Depending on the student’s territory or province of residence, when applying for funding, students may be asked to provide information such as their bank account number in Canada, their last year’s income tax return, birth date, social insurance number, spouse or parents’ social insurance numbers, etc. Undergraduates who fail to qualify for federal or provincial assistance often apply for a loan with their local bank or credit union or a major bank such as BMO or RBC. Many financial institutions feature education or student lines of credit with reasonable interest rates to help pay major expenses such as residency and tuition fees. Personal loans are also available to meet college-related expenses and come with either variable or fixed rate. Some banks also offer scholarships based on merit and scholarships for females, indigenous and aboriginal people, children of their employees, and people in special circumstances in general.

Laws and Regulations

A number of regulations and laws govern loan provision, including the Canada Student Financial Assistance Act, Canada Student Loans Act, and others. The Canada Student Loans Regulations, for example, include provisions on applicable interest rates, payment of interest rate and the principal, agreements and alterations, consolidation, reinstatement and continuation, and a lot more.

Federal Government Student Loan Programs

Canada Student Loan Program (CSLP)

Funding under the Canada Student Loan Program is available in most Canadian territories and provinces, including Quebec, Ontario, British Columbia, Nova Scotia, and others. There are certain eligibility criteria to meet, one being financial need. Students qualify for financial assistance provided that they are enrolled part-time or full-time in a certificate, diploma, or degree program. Permanent residents and citizens qualify for funding, and protected and designated persons are also eligible to apply. People aged 22 and over are required to pass a credit check.
The repayment period begins once people leave school, transfer from full-time to part-time studies, graduate from school, or leave school for a period of more than 6 months. There are different types of repayment assistance plans for undergraduates who find it difficult to keep up with payments, including Canada Student Loan Rehabilitation, revision of terms, the Repayment Assistance Plan, and others.

Canada Student Grants Program (CSGP)

Government grants are available to students from middle- and low-income families who are enrolled in a post-secondary program. Only people in designated institutions qualify for grants. Designated colleges and universities include the Red Deer College, Mount Royal University, College of New Caledonia, Atlantic Business College, Maritime Business College, and more.
There are plenty of options to look into, among which grants for part-time and full-time students, for persons with disabilities, people with dependents, aboriginal people, registered apprentices, and others. Full-time scholars are eligible to apply provided that they are enrolled in a certificate, diploma, or degree program. Funding is based on financial need, i.e. factors such as household annual income and family size. In addition, there are different programs to look into, examples being the Athlete Assistance Program and Post-Secondary Student Support Program.

Provincial and Territorial Student Loans

Alberta: The Alberta Learning Information Service

Scholars are eligible to apply for grants and student loans based on financial need. Funding is available to help meet expenses such as supplies and books, mandatory fees, and tuition fees. The monthly allowance is different for people with dependent children and those with no children. Students with dependents can also apply for dental, optical, and medical coverage.

British Columbia: StudentAidBC

People in British Columbia have different options to meet college expenses, including scholarships, grants, and loans. Other types of financial assistance include the Youth Educational Assistance Fund, work study programs, bursaries, awards.

Manitoba: Manitoba Student Aid

Students in Manitoba are offered financial aid in the form of bursaries, grants, and loans. Protected persons, landed immigrants, and Canadian citizens qualify for assistance. Undergraduate loans are interest-free during the repayment period and while enrolled in a diploma or degree program.

New Brunswick: New Brunswick’s Student Financial Service

Scholars in New Brunswick have access to a number of programs and services, among which personal learning and academic upgrading programs, digital literacy training, GED preparation courses, employment counseling and assistance services, financial assistance, and others. When applying for financial assistance, people are asked to provide details such as citizenship, province of residence, visible minority status, and category, i.e. married, single parent, or dependent.

Newfoundland and Labrador: Newfoundland and Labrador Student Aid

Aid is offered in the form of grants and loans and is available to part-time and full-time students as well as to persons with permanent disabilities. Applicants who are landed immigrants or Canadian citizens and demonstrate financial need qualify for assistance. To maintain eligibility, students are required to have an 80-percent course load for provincial funding and a 60-percent load for federal funding. Different types of assistance are available, including NL and Canada loans, the Canada Student Grant for Adult Learners.

Northwest Territories: NWT Student Financial Assistance

In the Northwest Territories, funding is available under the Student Financial Assistance Program. There are different types of funding for part-time and full-time students, including course reimbursement, the NWT Grant for Students with Permanent Disabilities, repayable loans, remissible loans, and basic grants. Repayable loans are offered to help students meet expenses such as travel, books, tuition fees, etc. Remissible loans, on the other hand, are in the form of a monthly living allowance.

Nova Scotia: Nova Scotia Assistance

There are different types of funding available, including grants and Canada Student and Nova Scotia loans. Financial assistance is available to both full- and part-time students. When applying, they are asked to provide information such as their income and spouse’s income, course description, start and end date.

Ontario: Ontario Student Assistance Program

In Ontario, funding is available to students who are enrolled in private career colleges, diploma and college programs, and universities. The type and amount of funding depends on factors such as parental income, number of children, and the year in which the student graduated from high school. Financial assistance is also available to people in special circumstances such as those on social assistance, deaf students and those with hearing problems, former and current crown wards, and other categories. Sources of funding include the indigenous people bursary, living and learning grant, and others.

Prince Edward Island: PEI Student Financial Services

People enrolled in the College de l’Ile, Maritime Christian College, Holland College, and UPEI are eligible to get a bursary in the amount of $4,400 to $8,800. There is no need to apply. They can also apply for the Government of PEI Marine Atlantic Bursary and Community Service Bursary. Loans are also offered to students from middle- and low-income families. In addition, there are different types of funding available, including the Island Student Award, Island Skills Award, George Coles Graduate Scholarship, Career Connect, and others. Debt reduction is available to scholars who are unable to keep up with repayment.

Quebec: Aide financiere aux etudes

Part-time students are offered loans while full-time students are eligible to apply for grants and loans. People with special needs are also offered material resources, special needs housing, paratransit, and specialized services. Scholars with disabilities are eligible, including those with organic and motor impairment, speech and language impairment, and severe hearing and visual impairment.
People who are unable to repay their loan are offered a deferred payment plan whereby the government of Quebec pays monthly interest on behalf of the debtor over a certain period of time /up to 6 months/.

Saskatchewan: Saskatchewan Student Financial Assistance Program

The Government of Saskatchewan offers grants and loans to scholars who are enrolled in post-secondary programs. When applying for a loan, people are asked to provide personal information such as social insurance number, dependents, ancestry, program information, name of institution, and so on. Students enrolled in designated universities are eligible to apply, including St. Peter’s College, Luther College, First Nations University of Canada, University of Regina.
Student Loan Forgiveness for Nurses and Nurse Practitioners is a program that targets healthcare practitioners and encourages them to move to small remote and rural communities. To be eligible under the program, applicants must have a license to practice in the province as a nurse practitioner, licensed practical nurse, registered psychiatric nurse, or registered nurse. To apply, healthcare practitioners are asked to provide employment information such as name of facility, profession, work address, valid registration number, loan forgiveness period, and attestor or supervisor information.

Yukon Territory: Yukon Student Financial Assistance

Students in Yukon have plenty of options to explore when it comes to financial assistance, including scholarships, training allowance, Yukon Excellence Awards, Canada student grants and loans, and the Yukon Grant. The latter is offered to people enrolled in post-secondary studies, including PhD and Master’s Programs. Only scholars enrolled in designated institutions qualify, such institutions being the Yukon College and Alkan Air Flight Training.

Private Student Loans

Loan Types

Financial institutions in Canada offer student lines of credit, personal loans, and specialty and standard student credit cards. Big banks such as the Royal Bank of Canada and the Canadian Imperial Bank of Commerce offer lines of credit with competitive interest rates, extended grace periods, and flexible limits. Credit lines are offered to undergrads who are pursuing a degree in Veterinary Studies, Dentistry, Medicine, Law, Engineering, Accounting, and others. Applicants are asked to provide proof of citizenship or residency status, list of financial resources, cost estimate, and confirmation of enrollment. Examples of financial resources to include are part-time employment, government financial assistance, bursaries and scholarships, RESPs, and others. Scholars are also asked to provide a cost estimate, including travel expenses, room and board, fees, supplies and textbooks, and tuition fees. Credit unions, banks, and other establishments also offer personal loans with flexible repayment periods. Some banks offer loans with no prepayment penalty. Many finance companies and banks feature student credit cards with attractive interest rates, welcome bonuses, awards points, cash back on purchases, and other beneficial features. There are credit cards that go with sign-up bonuses, no annual fees, comprehensive travel and medical insurance, and generous discounts.

Who Offers Private Student Loans

Big banks such as TD Bank, Scotiabank, BMO, CIBC, and RBC offer private loans and other borrowing solutions. TD Bank, for example, offers home equity and personal loans to help students pay major college expenses.

Education Savings – Canada Education Savings Grant and Registered Education Savings Plans

The Canada Education Savings Grant is money contributed to a RESP by the government. The goal is to help parents save toward education. The money can be used to cover the cost of part- and full-time studies in a designated university, college, trade school, publicly funded college or pre-university, or apprenticeship program. Parents, guardians, relatives, and others that choose to open a Registered Education Savings Plan are required to make a personal contribution. For every $1 contributed, the Canada Education Savings Grant contributes 20 cents.

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Final Words

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Why Choose motusbank

Personal Loans and Other Borrowing Solutions

Savings and Checking Accounts

Investment Products

Online Banking and Features

Find a solution to credit issues – get a secured credit card

How Secured Cards Work

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What Is the Right Credit Card for You?

Who Is Eligible to Apply

Top 6 Secured Credit Card Picks

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Fees, Limits, and Rates

Getting a Bad Credit Personal Loan in Canada with No Credit Check

Is There Such a Thing as Guaranteed Approval for Bad Credit Personal Loans

How to Get Unsecured Personal Loans with Bad Credit

Top 5 Bad Credit Personal Loans Lenders in Canada

Secured Bad Credit Loans

Unsecured Bad Credit Loans

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Using Payday Loans

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12. Refresh Financial Secured Visa Credit Card

Do You Need a Credit Card if You Already Have Bad Credit?

Can You Get a Credit Card with Bad Credit?

Does a Credit Card Help You Rebuild Bad Credit? Secured Credit Cards Explained

Types of Credit Cards for Bad Credit

Secured Credit Cards

Low Interest Credit Cards

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CIBC Aerogold^® Visa for Business

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1. Scotia Momentum^® Visa Infinite Card

2. SimplyCash^TM American Express

4. Scotiabank^® Gold American Express^®

5. BMO^® World Elite^TM MasterCard^®

7. Rogers^TM Platinum MasterCard^®

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